NHL Teams

How much is the Ottawa Senators selling for?

By Usha Shrestha / 18 May 2023 10:29 AM

The Senators players cheering after their game on February 14
Source : instagram

How much is the Ottawa Senators selling for? The Ottawa Senators is selling for between $900 million and $1.1 billion.

If the franchise is to be sold for over $900 million, then the transaction would be recorded as the highest in the history of the National Hockey League. Up until the beginning of March 2023, nine different groups had submitted bids to purchase the franchise.

The Senators' board of directors announced the sale of the team in November 2022. That was seven months after the owner, Eugene, passed away. Along with the business groups, celebrities in the countries are also interested in owning sports clubs.

More than because they are interested in sports, they buy a sports team as a fun financial asset. LeBron James, Tom Brady, and Kelly Ripa are some of them.

How Much Are the Ottawa Senators Worth?

Ottawa Senators worth are $800 million, calculated at the end of last year. Forbes listed the franchise as the 24th-most-valued team in the NHL.

According to the calculation of year-end 2022, the club has:

  • Team Value: $800 million
  • Price paid in 2003: $92 million
  • Revenue: $157 million
  • Operating Income: $47 million
  • Debt: 25%
  • Player Expenses: $57 million
  • Revenue Per fan: $ 71

In 2022, Sportico evaluated the franchise at $655 million. Yet the amount is assumed to be far lower than the expected bid for the team. The reason behind the higher valuation is that the Senators signed a memorandum to build a new rink at LeBreton Flats.

Left winger Brady Tkachuk with the referee in the ice rink
Source : twitter

Once a lease is in place at the LeBreton Flats, the value of the organization will rise dramatically. At present, the team has had the Canadian Tire Centre as its home arena since July 2013.

Just for information, the teams sold before, like the Pittsburgh Penguins, for $885 million, and the Nashville Predators are selling for around $775 million. 

Who Bought the Ottawa Senators?

No one has bought the Ottawa Senators yet. However, Rocco Tullio, Michael Andlauer, Andre Demarais, and Michael and Jeffrey Kimel are potential suitors.

To date, the Capital Sports and Entertainment Group (CSEG) still owns the franchise. Eugene Melnyk was the chairman and founder of the group until March 2022. After him, his daughters, Olivia, and Anna Melnyk, are the possessors of the group.

Rocco Tullio has been the owner of the Oshawa Generals since September 2007. The Windsor native is a self-made entrepreneur with a decade of experience in the real estate and land development business.

Similarly, Michael Andlauer is the founder and chief executive of Andlauer Healthcare Group. In addition, he is the founder of Toronto-based merchant bank Bulldog Capital Partners. He has over three decades of experience in the Canadian transportation industry.

Michael and Jeffrey Kimel are the co-founders of Harlo Capital. Michale once owned a minority stake in the Penguins. The Toroto-based brothers run successful businesses across North America.

The new owner of the franchise is to be announced shortly.

Celebrities Who Bid For The Senators

Ryan Reynolds, Soop Dogg, and The Weeknd are on the list of people who bid separately to buy the Ottawa-based National Hockey Team.

Ryan Reynolds joined with the Remington Group for the bidding of the Senators
Source : twitter

Reynolds is believed to have partnered with the Remington Group with the proposal to buy the team. However, he counted himself out as the prospective owner. Or else, resources showed he was ready to offer $900 million to the team.

Reynolds previously bought Wrexham Association Football Club in 2001 with fellow actor Rob McEihenney. Likewise, legendary rapper Snoop Dogg and Canadian recording artist The Weeknd have also backed out of the potential possessors.

Dogg wanted to own the franchise to help the game of hockey grow in urban communities and launch a youth hockey league in the States. He joined Los Angeles-based producer Neko Sparks for ownership.

 

New Owner of Ottawa Senators

New owner of Ottawa Senators are Anna and Olivia Melnyk. The Melnyk sisters took ownership after their father passed away in March 2022.

However, the siblings have agreed to the sale of the club for its enhancement. After seven months of Eugene Melnyk's demise, the team's board of directors officially announced the sale of the club. They have the condition that the possessor needs to be from Ottawa.

According to the Los Angeles space magazine, Sportico, the executive team of the Senators has employed a New York-based investment bank to sell the franchise.

Oliver and Anna Melnyck have been working with the club's board of directors to determine the next step that is best for the team.

Eugene daughter Anna Melnyk graduated from the UCLA in June 2021
Source : twitter

Likewise, the chairman and governor of the club, Sheldon Plener, has assigned Galatioto Sports as the financial advisor. The team has listed some of the potential suitors that can take over the franchise shortly.

And they are Rocco Tullio, owner of the OHL's Oshawa Generals; Michael Andlauer, a minority owner of the Montreal Canadiens; Harlo Capital owners Michael and Jeffrey Kimel; and Andre Demarais, owner of Power Corporation, a Montreal-based management and holding firm.

How Much Did Melnyk Pay For the Senators?

Melnyk paid $92 million for the Senators. Melnyk paid the amount in 2003, taking the team out of bankruptcy.

Eugene Melnyk was a Canadian businessman and philanthropist. He was the founder and chief executive officer of Biovail Corporation. In 2017, he was ranked 79th on Canada's 100 wealthiest people list by Canadian Business magazine.

In December 2020, under his tenure, the Ottawa team was listed as the 26th highest-valued franchise by Forbes Magazine. Moreover, the team made it to the Stanley Cup Finals in 2007 against the Anaheim Ducks.

Eugene Melnyk remained the owner of Senators from 2003 to 2022
Source : twitter

Prior to buying the Seantors, Melnyk bought the St. Michaels Majors, a junior hockey team in the Ontario Hockey League, in 2001. The club was later named the Mississauga Steelheads. The chairman sold the team to Elliott Kerr in 2012.

Eugene passed away at the age of 62 in March 2022 due to an unspecified illness. He once said to hand over the team to his daughters instead of selling it to someone else. Yet, the board of directors confirmed the sale process on November 5, the same year.

Before him, prominent business executive Roderick M. Bryden was the owner of the club. Bryden owned the team from 1992 until 2003. 

Ottawa Senators Revenue Per Year History

Ottawa Senators revenue per year history depicts the maximum augmentation from 2006 until 2023.

For instance, the franchise's worth was $380 million in 2013, which almost doubled to $655 million in 2021.

The amount exceeded pre-pandemic levels in the 2021–2022 season and amounted to 157 million American dollars, denoting a 134 percent increase in comparison to the previous year.

Likewise, the amount total up to eight million dollars by the end of 2022, according to Forbes' calculation.

The Senators were founded in 1992 and began to play in the 1992–1993 season. It paid $50 million at the time to the National Hockey League as an expansion fee.

Following are the team's returns since 2006 in U.S. dollars:

  • 2005/2006- 76 million
  • 2006/2007- 93 million
  • 2007/2008- 96 million
  • 2008/2009- 90 million
  • 2009/2010- 96 million
  • 2010/2011- 100 million
  • 2011/2012- 113 million
  • 2012/2013- 83 million
  • 2013/2014- 117 million
  • 2014/2015- 119 million
  • 2015/2016- 118 million
  • 2016/2017- 135 million
  • 2017/2018- 124 million
  • 2018/2019- 127 million
  • 2019/2020- 115 million
  • 2020/2021- 67 million
  • 2021/2022- 157 million

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